Data Base and Data Base Management System (DBMS) : Managing The Digital Firm, 12 Edition

Management Information Systems
MANAGING THE DIGITAL FIRM, 12TH EDITION
Chapter 6
Data Base and Data Base
Management System(DBMS)
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT
Learning Objectives
• Describe how the problems of managing data resources in a

traditional file environment are solved by a database
management system
• Describe the capabilities and value of a database management
system
• Apply important database design principles
• Evaluate tools and technologies for accessing information from
databases to improve business performance and decision
making
• Assess the role of information policy, data administration, and
data quality assurance in the management of a firm’s data
resources
2 © Prentice Hall 2011

RR Donnelley Tries to Master Its Data
• Problem: Explosive growth created information

management challenges.
• Solutions: Use MDM to create an enterprise-wide set of
data, preventing unnecessary data duplication.
• Master data management (MDM) enables companies like
R.R. Donnelley to eliminate outdated, incomplete or
incorrectly formatted data.
• Demonstrates IT’s role in successful data management.
• Illustrates digital technology’s role in storing and organizing
data.

Organizing Data in a Traditional File Environment
• File organization concepts

– Database: Group of related files
– File: Group of records of same type
– Record: Group of related fields
– Field: Group of characters as word(s) or number
• Describes an entity (person, place, thing on which we
store information)
• Attribute: Each characteristic, or quality, describing
entity
– E.g., Attributes Date or Grade belong to entity COURSE
4
THE DATA
HIERARCHY
A computer system organizes data
in a hierarchy that starts with the
bit, which represents either a 0 or a
1. Bits can be grouped to form a
byte to represent one character,
number, or symbol. Bytes can be
grouped to form a field, and related
fields can be grouped to form a
record. Related records can be
collected to form a file, and related
files can be organized into a
database.
FIGURE 6-1

• Problems with the traditional file environment (files

maintained separately by different departments)
– Data redundancy:
• Presence of duplicate data in multiple files
– Data inconsistency:
• Same attribute has different values
– Program-data dependence:
• When changes in program requires changes to data
accessed by program
– Lack of flexibility
– Poor security
– Lack of data sharing and availability
TRADITIONAL FILE PROCESSING
FIGURE 6-2 The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications.
Each application requires a unique data file that is likely to be a subset of the master file. These subsets of the master file lead to data
redundancy and inconsistency, processing inflexibility, and wasted storage resources.

The Database Approach to Data Management
• Database
– is collection of related data and its metadata organized in
a structured format
– for optimized information management
Database management system (DBMS)
– is a software that enables easy creation, access, and
modification of databases
– for efficient and effective database management
– Controls redundancy
• Eliminates inconsistency
• Uncouples programs and data
• Enables organization to centrally manage data and data security
HUMAN RESOURCES DATABASE WITH MULTIPLE VIEWS
FIGURE 6-3 A single human resources database provides many different views of data, depending on the information requirements of the user.
Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll
department.

• Relational DBMS
– Represent data as two-dimensional tables called files
– Provides a logical “human-level” view of the data and
associations among groups of data (i.e., tables)
– Each table contains data on entity and attributes
• Table: grid of columns and rows
– Rows (tuples): Records for different entities
– Fields (columns): Represents attribute for entity
– Key field: Field used to uniquely identify each record
– Primary key: Field in table used for key fields
– Foreign key: Primary key used in second table as look-up field to
identify records from original table

RELATIONAL DATABASE TABLES
FIGURE 6-4 A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and
PART showing how they represent each entity and its attributes. Supplier Number is a primary key for the SUPPLIER table and a foreign
key for the PART table.

RELATIONAL DATABASE TABLES (cont.)
FIGURE 6-4
(cont.) A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and
PART showing how they represent each entity and its attributes. Supplier Number is a primary key for the SUPPLIER table and a foreign
key for the PART table.

• Operations of a Relational DBMS

– Three basic operations used to develop useful
sets of data
• SELECT: Creates subset of data of all records that
meet stated criteria
• JOIN: Combines relational tables to provide user
with more information than available in individual
tables
• PROJECT: Creates subset of columns in table,
creating tables with only the information specified

THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS
FIGURE 6-5 The select, join, and project operations enable data from two different tables to be combined and only
selected attributes to be displayed.

• Object-Oriented DBMS (OODBMS)

– Put simply, object-oriented databases (OODB)
are databases that represent data in the form of objects and
classes. In object-oriented terminology, an object is a real-
world entity, and a class is a collection of objects.
– Objects may have many to many relations and pointers are
used to show relationships.
– Objects can be graphics, multimedia
– Relatively slow compared to relational DBMS for processing
large numbers of transactions
Hybrid object-relational DBMS: Provide capabilities of both
OODBMS and relational DBMS

• The difference between relational database and

object oriented database is that the relational data
base stores data in the form of tables which contains
rows and columns. Every column in the table has its
specific name and every row of the table has its own
primary key.
• While in the object oriented database the data is
stored in the form of objects. In the object oriented
data the data is stored along with its actions that
processes or reads the existing data.

• Capabilities of Database Management Systems

– Data definition capability: Specifies structure of database
content, used to create tables and define characteristics
of fields
– Data dictionary: Automated or manual file storing
definitions of data elements and their characteristics
– Data manipulation language: Used to add, change,
delete, retrieve data from database
• Structured Query Language (SQL)
– Many DBMS have report generation capabilities for
creating polished reports (Crystal Reports)


EXAMPLE OF AN SQL QUERY
FIGURE 6-7 Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They produce a
list with the same results as Figure 6-5.


• Designing Databases
– Conceptual (logical) design: Abstract model from business
perspective
– Physical design: How database is arranged on direct-access storage
devices
• Design process identifies
– Relationships among data elements, redundant database elements
– Most efficient way to group data elements to meet business
requirements, needs of application programs
• Normalization
– Streamlining complex groupings of data to minimize redundant data
elements and awkward many-to-many relationships

AN UNNORMALIZED RELATION FOR ORDER
FIGURE 6-9 An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers
for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.

NORMALIZED TABLES CREATED FROM ORDER
FIGURE 6-10 An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers
for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.

• Entity-relationship diagram
– Used by database designers to document the data
model
– Illustrates relationships between entities
• Distributing databases: Storing database in more
than one place
– Partitioned: Separate locations store different parts
of database
– Replicated: Central database duplicated in entirety at
different locations
AN ENTITY-RELATIONSHIP DIAGRAM
FIGURE 6-11 This diagram shows the relationships between the entities SUPPLIER, PART, LINE_ITEM, and ORDER that
might be used to model the database in Figure 6-10.

Using Databases to Improve Business Performance and Decision Making
• Very large databases and systems require special

capabilities, tools
– To analyze large quantities of data
– To access data from multiple systems
• Three key techniques
1.Data warehousing
2.Data mining
3.Tools for accessing internal databases through the
Web

• Data warehouse:
– Stores current and historical data from many core
operational transaction systems
– Consolidates and standardizes information for use across
enterprise, but data cannot be altered
– Data warehouse system will provide query, analysis, and
reporting tools
• Data marts:
– Subset of data warehouse
– Summarized or highly focused portion of firm’s data for use
by specific population of users
– Typically focuses on single subject or line of business

COMPONENTS OF A DATA WAREHOUSE
FIGURE 6-12 The data warehouse extracts current and historical data from multiple operational systems inside the organization. These data are
combined with data from external sources and reorganized into a central database designed for management reporting and analysis.
The information directory provides users with information about the data available in the warehouse.

• Business Intelligence:
– Tools for consolidating, analyzing, and providing access
to vast amounts of data to help users make better
business decisions
– E.g., Harrah’s Entertainment analyzes customers to
develop gambling profiles and identify most profitable
customers
– Principle tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining

• Online analytical processing (OLAP)

– Supports multidimensional data analysis
• Viewing data using multiple dimensions
• Each aspect of information (product, pricing, cost,
region, time period) is different dimension
• E.g., how many washers sold in the East in June
compared with other regions?
– OLAP enables rapid, online answers to ad hoc
queries

MULTIDIMENSIONAL
DATA MODEL
The view that is showing is
product versus region. If you
rotate the cube 90 degrees,
the face that will show is
product versus actual and
projected sales. If you rotate
the cube 90 degrees again, you
will see region versus actual
and projected sales. Other
views are possible.
FIGURE 6-13

• Data mining:
– More discovery driven than OLAP
– Finds hidden patterns, relationships in large databases and
infers rules to predict future behavior
– E.g., Finding patterns in customer data for one-to-one
marketing campaigns or to identify profitable customers.
– Types of information obtainable from data mining
• Associations
• Sequences
• Classification
• Clustering
• Forecasting

• Predictive analysis
– Uses data mining techniques, historical data, and
assumptions about future conditions to predict
outcomes of events
– E.g., Probability a customer will respond to an
offer
• Text mining
– Extracts key elements from large unstructured
data sets (e.g., stored e-mails)

WHAT CAN BUSINESSES LEARN FROM TEXT MINING?

Read the Interactive Session and discuss the following questions
• What challenges does the increase in unstructured data

present for businesses?
• How does text-mining improve decision-making?
• What kinds of companies are most likely to benefit from text
mining software? Explain your answer.
• In what ways could text mining potentially lead to the
erosion of personal information privacy? Explain.

• Web mining
– Discovery and analysis of useful patterns and
information from WWW
• E.g., to understand customer behavior, evaluate effectiveness of
Web site, etc.
– Web content mining
• Knowledge extracted from content of Web pages
– Web structure mining
• E.g., links to and from Web page
– Web usage mining
• User interaction data recorded by Web server

• Databases and the Web

– Many companies use Web to make some internal
databases available to customers or partners
– Typical configuration includes:
• Web server
• Application server/middleware/CGI scripts
• Database server (hosting DBM)
– Advantages of using Web for database access:
• Ease of use of browser software
• Web interface requires few or no changes to database
• Inexpensive to add Web interface to system

LINKING INTERNAL DATABASES TO THE WEB
FIGURE 6-14 Users access an organization’s internal database through the Web using their desktop PCs and Web browser
software.

Managing Data Resources
• Establishing an information policy

– Firm’s rules, procedures, roles for sharing, managing,
standardizing data
– Data administration:
• Firm function responsible for specific policies and procedures to
manage data
– Data governance:
• Policies and processes for managing availability, usability, integrity,
and security of enterprise data, especially as it relates to
government regulations
– Database administration:
• Defining, organizing, implementing, maintaining database;
performed by database design and management group

• Ensuring data quality

– More than 25% of critical data in Fortune 1000
company databases are inaccurate or incomplete
– Most data quality problems stem from faulty
input
– Before new database in place, need to:
• Identify and correct faulty data
• Establish better routines for editing data once
database in operation

• Data quality audit:

– Structured survey of the accuracy and level of
completeness of the data in an information system
• Survey samples from data files, or
• Survey end users for perceptions of quality
• Data cleansing
– Software to detect and correct data that are incorrect,
incomplete, improperly formatted, or redundant
– Enforces consistency among different sets of data
from separate information systems

CREDIT BUREAU ERRORS—BIG PEOPLE PROBLEMS

Read the Interactive Session and discuss the following questions
• Assess the business impact of credit bureaus’ data quality

problems for the credit bureaus, for lenders, for individuals.
• Are any ethical issues raised by credit bureaus’ data quality
problems? Explain your answer.
• Analyze the people, organization, and technology factors
responsible for credit bureaus’ data quality problems.
• What can be done to solve these problems?

All rights reserved. No part of this publication may be reproduced, stored

in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without the
prior written permission of the publisher.
Printed in the United States of America.
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall

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Management Information Systems

MANAGING THE DIGITAL FIRM, 12TH EDITION

• Describe how the problems of managing data resources in a

2 © Prentice Hall 2011

• Problem: Explosive growth created information

3 © Prentice Hall 2011

• File organization concepts

5 © Prentice Hall 2011

• Problems with the traditional file environment (files

TRADITIONAL FILE PROCESSING

7 © Prentice Hall 2011

HUMAN RESOURCES DATABASE WITH MULTIPLE VIEWS

9 © Prentice Hall 2011

10 © Prentice Hall 2011

RELATIONAL DATABASE TABLES

11 © Prentice Hall 2011

RELATIONAL DATABASE TABLES (cont.)

12 © Prentice Hall 2011

• Operations of a Relational DBMS

13 © Prentice Hall 2011

THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS

14 © Prentice Hall 2011

• Object-Oriented DBMS (OODBMS)

15 © Prentice Hall 2011

• The difference between relational database and

16 © Prentice Hall 2011

• Capabilities of Database Management Systems

17 © Prentice Hall 2011

18 © Prentice Hall 2011

EXAMPLE OF AN SQL QUERY

19 © Prentice Hall 2011

20 © Prentice Hall 2011

21 © Prentice Hall 2011

AN UNNORMALIZED RELATION FOR ORDER

22 © Prentice Hall 2011

NORMALIZED TABLES CREATED FROM ORDER

23 © Prentice Hall 2011

25 © Prentice Hall 2011

• Very large databases and systems require special

26 © Prentice Hall 2011

27 © Prentice Hall 2011

COMPONENTS OF A DATA WAREHOUSE

28 © Prentice Hall 2011

29 © Prentice Hall 2011

• Online analytical processing (OLAP)

30 © Prentice Hall 2011

31 © Prentice Hall 2011

32 © Prentice Hall 2011

33 © Prentice Hall 2011

WHAT CAN BUSINESSES LEARN FROM TEXT MINING?

• What challenges does the increase in unstructured data

34 © Prentice Hall 2011

35 © Prentice Hall 2011

• Databases and the Web

36 © Prentice Hall 2011

LINKING INTERNAL DATABASES TO THE WEB

37 © Prentice Hall 2011

• Establishing an information policy

38 © Prentice Hall 2011

• Ensuring data quality

39 © Prentice Hall 2011

• Data quality audit:

40 © Prentice Hall 2011